Taxes on BST sales

Of course you can if the buyer agrees to it.

So maybe I'm missing something? I thought the $600 threshold was for the total you receive over the year. Is it actually just individual transactions that total $600 or more? If that were the case I wouldn't think it would hit many of us. If it's for the total for the year, it would not matter if you broke up a sale into smaller amounts.

No, it is the sum total of g and s proceeds in one tax year, regardless of number of transactions.

That's what I thought. It threw me when I saw ones talking about splitting up the payment which would do nothng then, Thanks

This ruling should only apply to merchants who use Paypal to receive payments.
Not casual users who occasionally use it to offload used gear that they have already
paid sales tax on.

https://youtu.be/bUim9Jv0y6Q

So what happens if you don’t report it? I know PayPal sends the IRS the info but what if the you file yourself, you don’t add it on?

So what happens if you don’t report it? I know PayPal sends the IRS the info but what if the you file yourself, you don’t add it on?

I imagine it will be just like any other income you don’t report: you can file without it and if you get audited you’ll have to deal with it. Nobody “has” to report any of their income, but if you get a W2 or a 1099 or anything of the sort, whoever is issuing that to you is reporting it to the IRS as an expense to be written off. So if you file your taxes and don’t list it, they can bust you on it.

So what happens if you don’t report it? I know PayPal sends the IRS the info but what if the you file yourself, you don’t add it on?

The IRS is pretty good at matching up 1099s. Most likely you will get a bill for the full amount of income taxes due based on the 1099. I imagine it would be better to include the income and deduct the corresponding expense on your return.

This is ridiculous. Maybe the government should start working about spending less instead of trying to get money from the sale of personal shaving goods.

So what happens if you don’t report it? I know PayPal sends the IRS the info but what if the you file yourself, you don’t add it on?

I imagine it will be just like any other income you don’t report: you can file without it and if you get audited you’ll have to deal with it. Nobody “has” to report any of their income, but if you get a W2 or a 1099 or anything of the sort, whoever is issuing that to you is reporting it to the IRS as an expense to be written off. So if you file your taxes and don’t list it, they can bust you on it.

Dayman the federal government can’t spend less, they won’t get a larger budget next year which means they can’t justify raising your taxes.  You need to pay your share so the politician can live the lifestyle in which the American Taxpayer has so happily funded…..

I see myself sitting across from a level 1 IRS agent…
Sir, I see you sold several shaving brushes in 2021 for a total value of 2200 in taxable income yet you did nothing to report that? 

Correct, I sold 4 Jeffos and 1 Teddy.  The Teddy was gorgeous, original B3 Blood of Kings Pour, I should have never sold that brush, sick about it daily.  I’m sorry what was the question again? What resins were the Jeffos? No, something about money?

Everything I purchased was sold at a loss
Poison Pond Jeffo
Cost Basis $405
Sale Price  $275
Postage $25
Shipping Materials $5
And on and on and on

Good times….they’ll try and tax you 5x on the same shekel

AMERICA is a business

Nice to see some backpedaling on this and slowing the roll out. Below is from eBay and applied to PayPal as well from what I've read.


"If you've made at least $20,000 in gross sales and exceeded 200 transactions for goods* on eBay in 2023, you will receive a tax Form 1099-K for all your 2023 sales transactions. For tax year 2024, the IRS is planning a threshold of $5,000. Please visit our Form 1099-K FAQ page for more information."

Here's PayPal's update:

Will I have to pay taxes when sending and receiving money on PayPal - what exactly is changing?
Beginning January 1, 2024, the Internal Revenue Service (IRS) implemented new reporting requirements for payments received for goods and services, which will lower the reporting threshold to $600 USD for the 2024 tax season from 2023’s threshold of $20,000 USD and 200 transactions.

Here's PayPal's update:

Will I have to pay taxes when sending and receiving money on PayPal - what exactly is changing?
Beginning January 1, 2024, the Internal Revenue Service (IRS) implemented new reporting requirements for payments received for goods and services, which will lower the reporting threshold to $600 USD for the 2024 tax season from 2023’s threshold of $20,000 USD and 200 transactions.

PayPal's statement doesn't match what the IRS said in November. The IRS's press release stated:

Given the complexity of the new provision, the large number of individual taxpayers affected and the need for stakeholders to have certainty with enough lead time, the IRS is planning for a threshold of $5,000 for tax year 2024 as part of a phase-in to implement the $600 reporting threshold enacted under the American Rescue Plan (ARP).

https://www.irs.gov/newsroom/irs-announc...ementation